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AMORFIX ANNOUNCES FISCAL 2011 YEAR END RESULTS

TSX: AMF

TORONTO, June 29, 2011 /CNW/ - Amorfix Life Sciences, a product
development company focused on diagnostics and therapeutics for
misfolded protein diseases, today announced its operational and
financial results for the year ended March 31, 2011, as well as
financial results for the fourth quarter.

"Our focus in fiscal 2011 has remained on building our product pipeline
of novel diagnostics and therapeutic antibodies" said Dr. Robert
Gundel, Chief Executive Officer of Amorfix. "We have made tremendous
progress in the development of therapeutic antibodies for the treatment
of cancer which demonstrates the value of our proprietary discovery
technology, ProMIS. We have developed antibodies that have the desired
property of only binding to tumour cells and not to normal cells and,
thus, have the potential to be much more effective and safer
treatments. We will further validate this technology in the upcoming
fiscal year when we conduct proof of concept animal studies for one of
our targets. We are committed to position our ProMIS discovery
technology as a novel way of developing targeted therapeutics. The
medical community, patients and our industry are in need of a new
approach that identifies ways of developing therapeutics that can
overcome the issues associated with more traditional approaches.

In addition, our Alzheimer's diagnostic program is moving forward and we
are optimizing the assay for use as a new tool to accurately diagnose
this devastating disease. A major stumbling block to treatment of
Alzheimer's disease is the absence of robust biomarkers for early
detection and monitoring during clinical trials. There is a need for
more sensitive and reliable diagnostics to assess the levels of
biomarkers in order for current therapeutics to be effective, and for
enrolment into clinical trials. The Company has developed the EP-AD
Diagnostic CSF Test as a quantitative and ultra-sensitive biomarker
assay for detection of oligomeric Aβ in human CSF and have recently
announced (January 2011) that AB amyloid had been detected by the assay
in patients diagnosed with Alzheimer's disease. We believe our assay
technology also has the potential to identify patients with mild
cognitive impairment (MCI) who may progress into Alzheimer's disease
and we will be evaluating this potential once we have fully optimized
this innovative diagnostic tool.

The Company's Alzheimer's diagnostic's program was recently featured on
the television program Today in America with Terry Bradshaw. The
program highlighted the need for an accurate means of diagnosing
Alzheimer's disease and the pioneering work being conducted at Amorfix
to develop a new diagnostic. The program segment is posted on the
Amorfix website for viewing. In addition, we will be presenting
preliminary data of our EP-AD Diagnostic Test at the upcoming ICAD
meeting in Paris this July. We expect this to be a very well attended
session with great interest from industry and academic groups from
around the world.

Our A4 preclinical assay provides AD researchers with a tool that can
detect and quantify aggregated Abeta in a variety of different animal
models. We will continue to seek new partners in the upcoming fiscal
year to help promote this test to pharmaceutical companies and contract
research organizations."

Recent Corporate Highlights

In March 2011, the Company presented a paper at the 10th International Conference on Alzheimer's and Parkinson's Diseases (ADPD
2011) that took place in Barcelona. The ADPD conference is held every
two years to bring together leading researchers and clinicians studying
Alzheimer's and Parkinson's diseases. The paper, entitled "Detection
of β-Amyloid Aggregates in CSF From Transgenic Animal Models of
Alzheimer's Disease Using the Amorfix Aggregated Abeta Assay (A4)", is the result of collaborations with reMYND NV, the Karolinska
Institute, and the University of Southern Denmark. The results of this
study confirm the results of previous work performed in collaboration
with Biotrofix, Inc.

In May 2011, the Company announced that three patents to key targets for
misfolded SOD1 have now been approved by the United States Patent and
Trademark Office. Amorfix's successful patenting of the SOD1 targets
have particular importance for treatment of amyotrophic lateral
sclerosis (ALS) or Lou Gehrig's disease, a key Amorfix program. Dr.
Neil Cashman, the Chief Scientific Officer of Amorfix, has identified
and validated misfolding-exposed regions of SOD1 as novel targets for
ALS immunotherapy. In 2010 these targets were sublicensed to
Biogen-Idec Corporation for the development of ALS antibody
therapeutics and to the Pan provincial Vaccine Enterprise (PREVENT) for
the development of vaccine applications.

The Company is announcing that it will be presenting a poster on Sunday
July 17th, 2011 at the Alzheimer's Association International Conference
on Alzheimer's disease to be held from July 16-21 in Paris, France. The
poster presentation entitled "Development of An Ultra Sensitive Assay
for Detection of Aggregated Beta Amyloid in Human CSF", will present
preliminary data generated using the Company's EP-AD Diagnostic CSF
Test. Proof-of-concept validation suggests that this assay shows
promise as a potential diagnostic biomarker assay for Alzheimer's
disease.

The Company is also announcing that it has terminated its previously
announced $2.5M private placement offering and is now actively pursuing
other financing alternatives.

Financial Results

For the three months ended March 31, 2011 the Company reported a net
loss from operations of $784,549 ($0.02 per share) compared to net loss
of $1,249,460 ($0.03 per share) for the three months ended March 31,
2010.

For the year ended March 31, 2011 the Company reported a net loss from
operations of $3,330,437 ($0.07 per share) compared to a net loss of
$4,857,038 ($0.10 per share) for the year ended March 31, 2010.

For the three months ended March 31, 2011 revenue for services and sales
was $24,953 as compared to $605 for the three months ended March 31,
2010. For the year ended March 31, 2011 revenue for services and
sales was $119,900 as compared to $45,516 for the year ended March 31,
2010. Substantially all of this revenue was for its A4 test which the
Company began marketing in the third quarter of fiscal 2010.

For the year ended March 31, 2011 revenue from license fees was
$1,030,600 compared to $nil for the year ended March 31, 2010. The
Company entered into a license agreement with Biogen Idec in July 2010
and received a US$1,000,000 non-refundable fee. All of the revenue
related to this license agreement was recognized in the quarter ended
September 30, 2010.

Research and development (R&D) expenses for the three months ended March
31, 2011 were $575,474 compared with $891,991 for the three months
ended March 31, 2010. The decrease was due mainly to lower stock-based
compensation, lower salaries and program expenditures related to the
suspension of the vCJD and AD therapeutic programs offset by higher
program expenditures for both the AD diagnostic and ProMIS programs.

R&D expenses for the year ended March 31, 2011 were $3,156,835 compared
with $3,686,663 for the corresponding period in 2010. The decrease was
due mainly to lower stock-based compensation, lower employee related
and program expenditures related to the suspension of the vCJD and AD
therapeutic programs offset by higher program expenditures for both the
AD diagnostic and ProMIS programs.

General and administrative expenses for the three months ended March 31,
2011 were $216,506 compared with $347,867 for the three months ended
March 31, 2010. The decrease for the three months ended March 31, 2011
resulted mainly from lower stock-based compensation.

General and administrative expenses for the year ended March 31, 2011
were $1,163,329 compared with $1,192,527 for the corresponding period
in 2010. The decrease for the year ended March 31, 2011 resulted mainly
from lower stock-based compensation partially offset by severance costs
and higher consulting fees.

At March 31, 2011, the Company had working capital of $2,270,470 and
50,609,959 common shares outstanding. Management projects that its
current working capital will fund the Company's operations to December
2011. The Company is actively pursuing financing alternatives, but
there is no assurance that these initiatives will be successful, timely
or sufficient.

Outlook

The Company's Fiscal 2012 research priorities, subject to the Company
raising additional funds, are to:

Advance our ProMISTM antibody program targeting disease specific epitopes for both
therapeutics and companion diagnostics for cancer and other misfolded
protein diseases to a lead compound for late-stage preclinical
development;

Grow the revenue from our A4 amyloid testing service for cell culture, tissue and blood in animal
models of Alzheimer's disease (AD);

Complete development of a human Alzheimer's test adapting the A4 test protocol to detect aggregated Abeta, the hallmark of the disease,
in human plasma and cerebro-spinal fluid;

Additional information about the Company, including the MD&A and
financial results may be found on SEDAR at www.sedar.com.

About Amorfix

Amorfix Life Sciences Ltd. (TSX:AMF) is a product development company
developing therapeutic products and diagnostic devices targeting
misfolded protein diseases including Alzheimer's Disease (AD), cancers,
and ALS. Amorfix utilizes its computational discovery platform,
ProMIS™, to predict novel Disease Specific Epitopes ("DSEs") on the
molecular surface of misfolded proteins. Amorfix's lead programs
include therapeutics and companion diagnostics for cancers, antibodies
and vaccines to DSEs in ALS and AD diagnostic tests. In addition,
Amorfix's proprietary Epitope Protection™ technology enables it to
specifically identify very low levels of misfolded proteins in a
biological sample. The Company's diagnostic programs include an
ultrasensitive method for the detection of aggregated beta-Amyloid in
brain tissue, CSF and blood from animal models of AD, months prior to
observable amyloid formation, and development of a human screening test
for AD. For more information about Amorfix, visit www.amorfix.com.

The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. This information release may
contain certain forward-looking information. Such information involves
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different
from those implied by statements herein, and therefore these statements
should not be read as guarantees of future performance or results. All
forward-looking statements are based on the Company's current beliefs
as well as assumptions made by and information currently available to
it as well as other factors. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date of this press release. Due to risks and uncertainties,
including the risks and uncertainties identified by the Company in its
public securities filings, actual events may differ materially from
current expectations. The Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.